China Accuses US of $13 Billion Bitcoin Heist | Geopolitical Tensions Rise
Edited By
Olivia Johnson
China's National Computer Virus Emergency Response Center recently made headlines by accusing the United States government of a state-level cyber operation involving the theft of 127,000 Bitcoin, roughly valued at $13 billion. This accusation reignites tensions between the two global powers at a politically sensitive time.
The Background of the Allegation
The Bitcoin in question was originally taken from China's LuBian mining pool back in December 2020, when its worth was around $3.5 billion. At the time, the incident didn't garner much mainstream attention. However, the story gained traction as the stolen coins began to move in mid-2024, shifting to wallets linked to U.S. authorities, according to China’s findings.
A U.S. Department of Justice (DOJ) seizure announced in October 2025 further complicates the situation. The DOJ seized this Bitcoin as part of a case against Chen Zhi, who operated a significant crypto fraud and forced labor network. The DOJ insists its actions were lawful and has denied any involvement in the original theft.
Analyzing China's Claims
China argues that the lengthy dormancy of the stolen Bitcoin indicates a state-sponsored operation rather than the work of ordinary hackers seeking a quick profit. "Normal criminals would cash out immediately. The fact these coins stayed dormant for four years points to a state-level operation, not some random hacker," analysts suggest.
Responses to the Allegations
The controversy has sparked a flurry of reactions:
"So, the U.S. hacked a scam artist and now China wants the money?"
"Curiously, if they were just criminals, why didn’t they respond to ransom messages?"
"This sets a dangerous precedent in international crypto relations."
Comments from forums reveal significant skepticism about China's motives, highlighting the ironies of the crypto landscape and past accusations of intellectual property theft against China itself.
Key Takeaways
🔍 127K Bitcoins traced back to a 2020 hack from China.
💰 Seized Bitcoin now represents 39% of U.S. government-held BTC.
⚖️ "Normal criminals cash out quickly" - Analysts weigh in on state-level claims.
The timing of this accusation comes as U.S. President Donald Trump recently stated that America is leading in crypto adoption. This development could spark what some analysts are labeling as a looming "crypto cold war" between the U.S. and China.
End: A Tense Standoff?
With both countries accusing each other of misconduct, the dynamics of international relations in the crypto sector may be on the brink of a significant shift. As developments unfold, the world watches closely—will this clash redefine policies and attitudes towards digital currencies?
Future Shifts in Crypto Relations
As the U.S. and China continue to trade accusations, it's likely we'll see intensified scrutiny on digital assets and cybersecurity practices. Experts estimate around a 70% chance that these tensions will lead to new regulations impacting crypto markets globally. If the U.S. successfully defends its actions in the case against Chen Zhi, it may set a legal precedent that could affect other states accused of misconduct in the realm of cryptocurrencies. Simultaneously, China may double down on its claims to strengthen its position in the international crypto landscape, pushing for more stringent security measures in the digital space.
An Unexpected Historical Reflection
This situation bears resemblance to the economic tensions during the Cold War, particularly the conflict over technological advancements in the aerospace sector. Just as nations competed to claim the technological high ground by racing towards the moon, today’s crypto conflict can be seen as a new frontier in global economics. In both cases, the perceived winner of this competition could redefine global power dynamics for decades, showcasing both the fear and allure of cutting-edge innovation.